Tuesday 10 May 2011

LIFE INSURANCE PREMIUM



Life Insurance Premiums are certain amounts of money that are paid to the insurer to keep a life insurance going. Life Insurance Premiums are money paid by an insured to the insurer in advance. partly to compensate for the money that might be in use if the insured dies within the insured time and without paying to much of money in advance. 

Premium Amount and the Options Available for Insureds
Amount of the Life Insurance Premiums, whether it is monthly, periodic or yearly depend on the kind of insurance policy one has insured himself or herself. There are many kind of Life Insurance Premiums available in the market and one has to choose the best for himself or herself.

If one has a steady income he or she can go for high Life Insurance Premiums and can avail the facilities of Life Insurance as well as other facilities like pension plan, juvenile coverage and a monthly income plan and many other things. But someone who does not have a steady income nor does he or she avail a secure future also can go for insurances which are lower in nature and only provide cover for something specific, like death. 

Types of Policies and Premiums
Those who pay a fixed and high rate of Life Insurance Premium to avail a Whole Life Insurance also get the benefit of cash back as the policies get matured. This is one benefit that makes one to go for Whole Life Insurance in spite of problems. One can also borrow some money from the insurance company if he or she pays a high rate of Life Insurance Premiums. If someone stops paying Life Insurance Premiums in the middle of the contract he gets back some kind of money if he has the Whole Life Insurance Policy.

Those who go for Term Life Insurance and pay a low Life Insurance Premium find their policies lapsed once he or she stops paying Life Insurance Premiums and he or she does not even get a single penny back from the company.

1 comment:

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